hsbc offer!

spainfinder

Hi Guys

i have received an offer today in the post for £2820! which is great!

but they want to pay it off an existing hsbc debt! however they sold my debt to a debt collection agency as far as i was concerned and i have made arrangements to pay and have been paying for the last three years.

any advice

amersall

If this debt was sold on,then you should get the redress back to you.

If it was just passed over by the bank to be collected,then they can take the redress of arrears.

spainfinder

How would i find out?

dunstonh

You cant as typically it is a commercial agreement and they wont disclose commercial agreements to you. A lot of the time, the debt is not sold but the bank has just contracted out the debt collection to the third party. So, the ability to offset still remains.

Even when the debt is sold on, sometimes there is an agreement for the bank to pass on any money it receives. This is where it starts getting grey.

Logically, it would be wrong to pay you the money as you effectively havent paid the PPI. So, using it to offset the debt just cancels the amount from your debt as if it was never there.

You can refer the case to the FOS if you wish. They will know what arrangements exist. Or you can ask the bank to clarify the position as you feel they cannot pass the redress on to the collection agency. They will soon tell you under what rule that they believe they can.

spainfinder

Thanks for the reply
this debt as nothing to do with ppi i am claiming , i had paid that loan in full! the debt is another loan which got passed to the collection agency which in turn got passed on to another collection company i made an arrangement to pay and have not missed a payment!
im surei received a letter to say this company had taken over this debt

spainfinder

i remember getting a letter to say that the debt had been sold to cl finance!

dunstonh

spainfinder wrote: »

Thanks for the reply
this debt as nothing to do with ppi i am claiming , i had paid that loan in full! the debt is another loan which got passed to the collection agency which in turn got passed on to another collection company i made an arrangement to pay and have not missed a payment!
im surei received a letter to say this company had taken over this debt

As the debt is not the same debt then the rules of offset would be harder for them to use if they have sold the debt on rather than just contracting out that bit. The FOS have ruled against banks that have sold debts on and cannot use the rule of offset on those. it doesnt mean they will in all cases but t does mean they look at it and may not go with the bank

Back in my banking days, I was there when they stopped the staff doing the collections work and brought in collection agencies. The terminology used then was passing the debt to a collection agency. It wasnt sold and if the bank was to ever receive money, then the agreement was that it had to be passed on to the collection agency. The debt wasnt sold but people used to think it was by interpretation as it was a different company name and logo. It was just passed to them instead and they got a share of whatever was recovered. That was a long time ago but you can see how knowing if it was passed or sold on can lead to different outcomes.

spainfinder

what do you think my next step should be?
should i contact the bank or go staright to the fos

dunstonh

FOS will take up to a year to decide. Bank may give you a quicker answer and you can still go to the FOS after that.

Query it with the bank first.

spainfinder

Hi Guys


i contacted hsbc regarding metropolitan selling my debt to cl finance, jus been intouch with them again . they have told me metroplitan some times buy back debts. is this true? would they need to contact me 1st to let me know? why am i still sent statements from cl finance?

doesnt sound right to me?

ps
just been intouch with cl finance and they tell me they still own debt??

spainfinder

HI Guys

this getting a bit strange

ive been in touch with cl finance they have told me they own the debt! hsbc have told me to ring metropolitan to which i did and they told me they sold the debt in jan - 09


whats going on i think ?
someone is not telling the truth!!!